TEMPO.CO, Jakarta – The Indonesian police and Bank Indonesia focus on handling illegal foreign exchange activities in state borders. The central bank and the police will intensify dissemination on currency trade regulations, especially in Jakarta, Bali, Surabaya, Pontianak, Batam and Medan.

Yesterday, BI and the police signed the MoU in the field of payment systems, to address the increasing reports on illegal currency exchange operations in unlicensed money changers.

As of August 2014, Bank Indonesia noted there were 916 licensed foreign exchange traders.

Agus Santoso deputy chief of Financial Transaction Reports and Analysis Centre (PPATK), said that even though these illegal money changers are small businesses, the government needs to be serious in addressing their existence. Unlicensed traders should be shut down, and financial supervision should be tightened.

Regulations on foreign exchange trading, said Agus, should also be tightened, especially as Indonesia will enter the ASEAN Economic Community next year. "If foreigners decide to open up money changers here, can BI forbid them?" he said. "We must not let unlicensed foreign traders prevail in the country and shut down the businesses of local merchants."

MAYA NAWANGWULAN | MARTHA THERTINA | RR. ARIYANI